On July 10, 2026, the IRS announced that they have increased the business standard mileage rates, retroactively effective to July 1. Announcement 2026-11, which modifies the earlier published rates for 2026 issued in Notice 2026-10, revises the “optional standard mileage rates for computing the deductible costs of operating an automobile for business, medical or moving expense purposes.” These standard rates are utilized for “determining the reimbursed amount of these expenses that is deemed substantiated” and are issued by the agency to simplify the substantiation of vehicle expenses incurred by taxpayers for business, medical, and military moving purposes.
The announcement clarifies the updated rates:
- The business rate is 76.0 cents per mile (up from 72.5 cents per mile for the first half of 2026)
- The medical and moving expense rate is 23.5 cents per mile (up from 20.5 cents per mile for the first half of 2026)
Note that the standard mileage rate for charitable contributions is fixed by statute at 14 cents per mile and was not changed by this announcement.
The IRS notes that this modification results from recent increases in the price of fuel.
Payroll and expense-reporting systems may need to be updated, depending upon the company’s reimbursement policy, to accept the two different rates for the same calendar year, based upon the date the underlying business-related trip occurred.
If you have any questions, do not hesitate to reach out to your Schneider Downs tax advisor.
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